Porsche plan to cut 5000 more jobs approved by unions – report

A chilly wind has blown in from China, and Porsche is preparing to weather the storm with further cuts.

According to Automotive News, Porsche's supervisory board, half of whose members are workers' representatives, has approved a plan put forth by CEO Michael Leiters to cut a further 5000 jobs in Germany.

The company had previously agreed to a reduction of 3900 German jobs with its unions, and currently employs around 23,000 people in Germany.

It's expected administrative functions and research and development personnel, especially at the development centre at Weissach outside of Stuttgart, will be heavily impacted by this latest job cull.

As part of the company's streamlining efforts, Porsche will be simplifying its product and trim offerings, and this, it's argued, will reduce the need for engineering capability. Mr Leiters has reportedly confirmed the ranks of management personnel, including senior managers, will also be trimmed.

The job losses and belt tightening are due to a sharp downturn in sales. In 2023 the company sold a record 320,221 vehicles across the world, but the automaker only expects to sell around 250,000 units this year, with a sharp decline in the Chinese market forecast. For reference, Porsche sold 279,449 cars globally in 2025.

Porsche projects it will stay in the black this year with an operating profit margin of between 5.5 and 7.5 per cent. While many manufacturers, including corporate cousin Volkswagen, would be happy with these margins, they are a far cry from double-digit figures the brand once boasted.

Mr Leiters is targeting a return to 15 per cent margins in the medium term, fuelled in part by cost reductions, but also new products, some of which could be announced at a public strategy briefing planned for early October.

In July last year Porsche approved a successor to the petrol-powered Macan, which will be launched in 2028 and based heavily on the latest Audi Q5.

With the petrol-powered first-generation Macan ending production this month, and the second-generation Macan riding on an EV-only platform, Porsche will soon be left with a large hole in its lineup.

Last September, the company announced its new flagship three-row SUV would be shifted from an EV platform to one that supports both petrol and plug-in hybrid drivetrains. It also committed to adding high-performance petrol engine options, eventually, to its long-delayed 718 Boxster/Cayman EV range.

But while Porsche is adding new models, a recent report from newspaper Bild indicated the brand could cut the Taycan and Cayenne Coupe. The same report also suggested the combustion-powered versions of the next-generation 718 lineup may not see the light of day.

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